Why do you need revenue data to insure your business?
Business insurance policies often require your sales data. This is important to calculate the amount of the premium. Because; the higher the turnover, the more risk you run. But the turnover can also (temporarily) decrease. In this blog we tell you what to look out for and how to keep the premiums as low as possible. Especially for disability insurance this is very important.
What insurances?
For SMEs and sole traders, there are 4 main insurance policies for which you need to know your company's turnover data:
- Business liability insurance: Covers damages your business causes to your customer or client.
- Professional liability insurance: In case of negligence or mistakes on your part, causing your client to suffer losses or miss sales, this insurance offers help.
- Legal Aid Insurance: If you become embroiled in a conflict with a client or customer, you could use some legal assistance.
- Disability Insurance: As a business owner, you are not entitled to government disability benefits. If you think "that won't happen to me," you are taking a big risk about your income and the survival of your business. Disability insurance will help you through difficult times.
Estimate turnover
The insurance company always wants to know your basic information plus the expected turnover of your business. This is determined by previous years' sales. If you are a starting entrepreneur, then you may do a turnover estimate. You are then always insured, even if your business turns out to have a much higher turnover in the first year than you thought.
Annual recalculation
For the first three policies, the insurance company will automatically send you a recalculation form every year, or once every three years. On this you provide the current turnover data. If there are strong changes, it will obviously affect the amount of your premium. The fourth insurance, disability insurance works a little differently. For this you have to be alert yourself.
Disability insurance self-insurance
'For self-employed entrepreneurs, disability insurance is of great importance, but at the same time it is also the most difficult insurance to maintain properly,' says Anita, office assistant at insurance specialist Cheapp. 'You don't want to pay too much, of course, but certainly don't want any surprises if you fall ill. And there are lots of factors that affect the amount of the premium and the benefit'. What all should you keep an eye on?
Checklist:
- Insurance term: The maximum final age for many professions is 67. But you can adjust this yourself; after all, you are self-employed.
- The insured amount: Insurers set a limit on the amount of the insured amount. Generally speaking, you cannot insure more than 80% of your average income (gross). You can adjust this amount in the interim.
- Has anything changed in the past year regarding your financial reserves or family situation? Even then you can adjust your insurance.
- If you temporarily cannot find an assignment or want to take a break, you can suspend the insurance for up to 1 year. You then pay less premium but also receive no benefit.
Business insurance from Alpina
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